Intel is laying off more than 12 thousand of its employees — that’s 11% of its workforce. According to the company, the majority of these layoffs will be happening in the next 60 days.
Intel says that the latest layoffs are apparently part of the company’s initiative to accelerate transformation, stating:
These changes will result in the reduction of up to 12,000 positions globally — approximately 11 percent of employees — by mid-2017 through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs. The majority of these actions will be communicated to affected employees over the next 60 days with some actions spanning in to 2017.
The company is planning to increase investments in technologies that will drive more profit, and increase its revenue growth. Alongside the Internet of Things, data center, memory, and connectivity businesses, Intel also plans to focus on 2-in-1 PCs, gaming, and smart home systems:
While making the company more efficient, Intel plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses. Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways.
Of course, the latest layoffs are not really surprising, considering the fact that PC sales are continuously plummeting. Additionally, Windows revenue is also expected decrease by 7.5%, which is quite a huge drop. As it seems like, Intel will mainly be focusing on the Internet of Things, as it strives to drive more profit from profitable businesses.